2027 Commercial Real Estate Outlook
As commercial real estate enters 2027, shifting capital flows, uneven property performance, and rapid advances in AI are reshaping investment and operating strategies
Commercial real estate is expected to enter 2027 with capital continuing to flow, but with less room for indiscriminate spending. A more cautious outlook, tighter budgets, and growing disparities across the market are prompting leaders to decide—asset by asset and capability by capability—where investment makes the most sense.
That sorting extends beyond properties to markets, tax strategy, workforce planning, and technology. The firms well-positioned to outperform may not be those that spend the most, but those that act with the greatest discipline, upgrading where demand supports it, selling assets with limited prospects for recovery, bringing tax into investment decisions earlier, governing AI before scaling it, and building the leadership capabilities the next cycle will likely require.
Key takeaways:
- Business sentiment: Commercial real estate (CRE) executives are preserving capital, according to Deloitte’s survey of 950 industry leaders (see methodology). But they remain confident in their core business operations, with 51% of respondents still expecting their revenues to grow more than 5%.
- Portfolio strategy: Nearly 80% of respondents expect to update or reposition existing assets over the next 12 to 18 months.
- Tax strategy: Over 60% of executives surveyed plan to shift capital to jurisdictions or assets with stronger tax incentives. More than 90% say tax strategy will be more central or is already central to their investment decisions.
- CRE leadership of the future: Two out of three CRE executives say AI and data fluency will be among the most important capabilities for future leaders.
- Artificial intelligence: While 72% of respondents have completed preliminary data mapping and source verification for their AI systems, fewer than half have implemented more advanced process and security controls.
